Prime Minister Sanae Takahashi denied any official approval of the "Sanae Token" cryptocurrency during a budget committee session [1].
The denial comes amid growing pressure from opposition lawmakers who suggest the Prime Minister's office may have been involved in promoting the digital asset. The controversy has spilled over into legislative timing, leading the government to cancel elections linked to the recently passed "sub-capital" law.
During the proceedings, Rep. Goto of the Center for Democratic Reform questioned the timing of the Prime Minister's knowledge regarding the asset. Goto said that by Feb. 25, 2026 [1], the Prime Minister must have pretended not to know about the cryptocurrency to alter certain statements.
Takahashi said the company issuing the token explicitly stated on its website that it had not received her approval. She said that this is the truth [1]. Takahashi said she viewed the system as app-based points rather than cryptocurrency or digital assets [1].
Opposition members had previously pressed the issue during a budget committee meeting on Feb. 22, 2026 [2]. The tension peaked following the passage of the sub-capital related law on Feb. 24, 2026 [1].
The government had initially considered holding elections based on that law on the same day as other votes. However, Takahashi said the government would refrain from holding those elections. The administration described the idea of a same-day election under those circumstances as "outrageous" [1].
While the Prime Minister maintains her distance, other reports suggest a different narrative. Some sources indicate that Takahashi's office acknowledged contact with the organizers and may have been involved in spreading information about the token via social media, and video platforms [1].
“"The company issuing the token explicitly stated on its website that it had not received my approval."”
This clash highlights the volatility of digital assets in Japanese politics and the potential for 'token' schemes to create legal and ethical liabilities for high-ranking officials. The decision to cancel the sub-capital elections suggests that the political fallout from the Sanae Token controversy has created enough instability to disrupt the government's planned electoral calendar.
